The Government of the Virgin Islands has recently enacted Tax Increment Financing (TIF) as a mechanism to stimulating economic growth and development in the Virgin Islands.  TIF creates a public –private partnership which encourages otherwise cost prohibitive development of needed public infrastructure. TIF can be used to finance a variety of costs and improvements pertaining to public infrastructure, demolition, utilities and planning costs, affordable housing and schools, along with many other uses.

Government Mandate:

It is the policy of the Government of the United States Virgin Islands through the Virgin Islands Economic Development Authority (the "Authority") to promote the sound growth and development, vitalization and revitalization of the United States Virgin Islands through the use of real property tax increment revenues and gross receipts tax increment revenues to pay for or finance the cost, or a portion of the cost, of capital improvements projects in areas where a finding has been made by the Authority, and approved by the Legislature, that the need for tax increment financing will be a significant enhancement of the economic viability of a project. Such projects will promote significant opportunities for employment of its citizens; attract new business enterprises within the TIF areas; retain or expand an existing business enterprise in the TIF area; provide affordable housing in the TIF area; increase revenues to the Government through increased tax revenues; be beneficial to the general economic development of the TIF area; and/or create projects that would not have been developed without TIF.